The demand curve is P = 800 - 25Q_D.The supply curve is P = 500 + 25Q_S.At market equilibrium,the equilibrium quantity is ________ and the equilibrium price is ________. A)25;0.17 B)650;6.0 C)0.17;25 D)6.0;650 E)1,300;zero

Question

Quizplus · Accepted Answer

At market equilibrium, quantity demanded(QD) equals to quantity supplied(QS). 800 - 25Q_D = 500 + 25Q_S 300 = 50Q_S Q_S = 6 Substituting the value of Q_S in either of the equations, we get: P = 800 - 25(6) P = 650 Therefore, the equilibrium quantity is 6, and the equilibrium price is 650. So the answer is D.

The Demand Curve Is P = 800 - 25QD

The Demand Curve Is P = 800 - 25Q_D